Question

How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?

NCERT Class IX
Economics - Main Course Book

Chapter 1. The Story of Village Palampur

Answer 1

The money requirements of small and large farmers is met by borrowing money from large farmers or the village moneylenders or the traders who supplies various inputs for cultivation ,which have a high interest . Whereas on the other hand ,medium and large farmers have a high productivity and so, they keep some grains for self consumption and sells the rest of grains into the market which met the money requirements of medium and large farmers and also, they are able to keep some money to deposit in their bank accounts,some to lend money to the small and marginal farmers and some for increasing their working capital and rest for their own expenses.

Answer 2

The medium and large farmers have their own savings from farming.In contrast, the small farmers have to borrow money to arrange for the capital.They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation.